25 JUN, 2012, PTI
NEW DELHI: Chiefs of top mining companies worldwide are bullish about demand from China and India, which is expected to boost global commodities market worldwide, says a report.
Global consultancy PwC in its latest report on mining industry has also said that India would require huge increases in coal import to meet its growing power generation and for industrial needs.
"Mining CEOs remain bullish about demand from emerging economies, led by China and India, which are anticipated to continue to drive demand for commodities," it noted.
The report is based on an analysis of top 40 mining companies globally -- based on their respective market capitalisation. It includes future perspectives from CEOs of a number of the top 40 entities.
"India has large reserves, but much of it is located in environmentally sensitive or under-developed, but highly populated areas, making ramping up production difficult.
"In 2010, India's annual production was around an eighth of China's and has not been increasing at the same rapid rate. India's economy will grow substantially and as it expands, the country will require huge increases in coal imports, both for power generation and for industrial uses," the report said.
The top 40 miners include BHP Billiton, Rio Tinto, Vale, Anglo American, Xstrata, Glencore and Coal India.
Together, these 40 entities posted profit of $133 billion in 2011, mainly on the back of high commodity prices. Of the top 40 miners in 2011, 19 were from emerging markets.
"The demand prospects remain robust and long-term growth in emerging markets is more significant to the mining industry than short-term global economic concerns. There is a growing disconnect, with investors reacting more to the latter," Kameswara Rao, Leader Energy Utilities and Mining, at PwC India said.
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